Alessandra Di Castro (Apollo Group), "Need art-related tax reform: Italy deserves a different future"

Alessandra Di Castro, an antiquarian with a long and relevant experience, has been chairing since 2024, and until 2026, the Apollo Group, which represents the art industry in Italy and brings together antiquarians, art dealers, galleries of ancient, modern and contemporary art, auction houses, collectors, and companies operating in the art logistics sector. Apollo Group has been very active for several months in the debate around reforms that should change the current Italian art market system so that it is made more competitive. What are the most urgent aspects? Here is the position of Alessandra Di Castro and the Group.

IB. Long timescales, bureaucratic uncertainties, an audience of collectors ahead of their age, constraints granted too hastily, important works sometimes let go, but an increasing focus on quality, and a dialogue between the state and sector operators unthinkable even a few years ago: this is a sketchy snapshot of the market for ancient art in Italy at the year 2024. Is Italy competitive in the international picture?

ADC. Apollo Group works to foster and promote the growth of the Italian art system, so that our country, in addition to being a custodian of the artistic heritage, also returns to being a competitive player in the field of the international market, recovering the central position it deserves. The current regulations unfortunately disadvantage Italy compared to other European countries: the effect, which is increasingly evident, is the reduction in the number of antiquarians, galleries, fairs and auction houses active in the territory and the consequent strong impoverishment of the entire supply chain linked to the market. We have a heritage of restorers, artisans, fine-art logistics companies, curators, creatives and consultants that are increasingly at risk: all professions that continue to attract young people coming out of academies and universities and that, increasingly, are struggling to fit in because of the chronic decrease in job opportunities in the field.

What is the most pressing problem?

As we have been alarmed to report for months, there is an urgent need for an art-related tax reform to be adopted first, precisely now that a unique and non-procrastinable conjuncture is upon us: in fact, by December 31, 2024, the government should adopt the legislative decrees implementing the proxy for tax reform (L.11/2023). Italy, as established by European Directive 2022/542, has the option to reduce the VAT rate for the supply of art objects (currently at 22 percent) and for the import of works on Italian territory (currently at 10 percent). France, for example, has been more responsive and forward-looking than us, reducing its rates to 5.5 percent as of January 1, 2025. If we do not comply, Italy risks being isolated in the European context and will only confirm a trend that is already dramatically visible by now: antiquarians, galleries, fairs and auction houses will increasingly opt for partial or total relocation abroad, with serious damage (also in terms of employment) for the entire supply chain and a noticeable contraction of the domestic market, which is already at the end of its tether. In addition to the fiscal aspect, then, we hope that a reform of the rules related to the circulation of works of art will finally be undertaken, an essential issue to boost trade, attract new collectors, and revitalize the market and the entire supply chain. We are working so that some changes can be put in place that, although circumscribed, would allow, on the one hand, to simplify a bureaucratic apparatus that is today inadequate and at times anachronistic, and, on the other hand, to bring our regulations into line with the relevant EU guidelines.

What, on the other hand, could be done to make the market more fluid but without affecting the prerogatives of the state?

Without any detriment whatsoever to the protection of assets, a point that is indispensable for the Apollo Group, the most important challenge must be undertaken and won: that of countering and limiting uncertainty and distrust in the regulatory apparatus. It is precisely the mistrust arising from the uncertainty and complexity of the regulations that is leading to a negative result that is there for all to see: Italian art is being devalued, losing bite, appeal and value, from the ancient to the modern and contemporary. The Italian market is becoming increasingly asphyxiated precisely because of the uncertainty of procedures, timing, directives and directions. Therefore, a change of course and a work of simplification would not only benefit private and public collecting, but Italian art itself: the one we all cherish and say we want to enhance and defend. In the first instance, we ask that a series of punctual correctives be adopted: we repeat, the prerogatives of the state would not be affected but, on the contrary, all parties would benefit from a significant easing of bureaucracy and greater operational fluidity. In this regard, it would be important, for example, to adjust the value thresholds for certificates of free movement (currently set at 13,500 euros) to the higher thresholds provided for in EU Regulation (EC) 116/2009, so that our country aligns with other member states. We would then like to see a single time threshold at 70 years and the extension of the duration of CASs and CAIs, simple fixes that would not only help operators but also lead to an easing of pressure on export offices, which are now overburdened and constantly understaffed. The institution of notification should also be rethought and rationalized. If a work is of real public interest and its export is denied, the state should take responsibility for acquiring the asset and making it, as a result, available to the community, as is the case in France, for example. Streamlining the rules would help impart a new climate of confidence: today’s collectors are terrorized by bureaucracy, notifications and, as mentioned above, uncertainty. Not to mention foreign collectors, who increasingly choose Italy as their place of residence and would be eager to transfer and implement their collections in our country. But the rigidity and complexity of the bureaucracy frightens them, just as it disincentivizes lending to public exhibitions by all private collectors and sector operators. But that’s not all: it would be necessary to introduce a series of incentives for patronage, to detax and encourage donations, as well as a tax credit for the purchase of works by young artists living and residing in Italy.

How, then, to balance the needs of those in the sector with those of protecting the national heritage?

We believe that the only way to achieve good results is through confrontation and dialogue, a flame already lit that we cannot let go out. We have been working for a long time with commitment and seriousness to overcome slogans and ideological postures, with the sole purpose of collaborating with institutions for a positive growth of the sector for Italy. It is essential to maintain a permanent table between institutions and the trade associations united in the Apollo Group: this is the only way to finally move forward to make the art system in Italy competitive, while at the same time safeguarding both the function of protecting cultural heritage and the right of private propertỳ. The art market and institutions are not on a collision course; this is an old legacy that we need to leave behind. There is a need to converge, to listen to each other: all parties would benefit and the country would open up to a more relaxed and fruitful climate.

In essence, how can the current situation be improved?

We hope that the political decision-maker will take on board the requests of galleries, auction houses, antiquarians, and not least of all exhibitions: it is not only a heritage of knowledge and skills that is dying out that is at stake, but the survival of the entire branch linked to the art world. Italy deserves a different and brighter future, but together we must find the tools to achieve it.

This contribution was originally published in No. 24 of our print magazine Finestre Sull’Arte on Paper, erroneously in shortened form. Click here to subscribe.

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